Which of the following is more likely to be effective in increasing the growth rate of real GDP? temporary cuts in income taxes permanent cuts in business taxes a one-time personal income tax rebate All cuts in taxes are equally likely to increase the growth rate of real GDP
Which of the following is more likely to be effective in increasing the growth rate of real GDP? temporary cuts in income taxes permanent cuts in business taxes a one-time personal income tax rebate All cuts in taxes are equally likely to increase the growth rate of real GDP
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.7P
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2. Which of the following is more likely to be effective in increasing the growth rate of real
- temporary cuts in income taxes
- permanent cuts in business taxes
- a one-time personal income tax rebate
- All cuts in taxes are equally likely to increase the growth rate of real GDP
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